By Stephanie Eidelman | President, Kaulkin Media

This week we officially opened our annual Best Places to Work in Collections program for registration!

Now in its fourth year, insideARM.com’s Best Places to Work program recognizes the most positive workplace environments in our industry.  Winners have enjoyed great benefits including enhanced reputation with creditors, morale boost, and recruiting support.

Compete against companies of your own size.  No need to feel that you can’t measure up against the benefits and resources of a large company, or the family feeling of a small company.  Rankings are determined within three size categories: small (15-74 employees), medium (75-249 employees) and large (250+ employees).

It works like this:

1. Employers complete a questionnaire on workplace policies, practices, philosophy, systems, benefits, and demographics. It can take about 8 hours to gather all of the info for this questionnaire – but hey, if it was totally simple, it wouldn’t produce meaningful results – and if you register now, you’ll have months to pull it together.

2. Employees are asked an in-depth set of questions — you choose online or via paper format; either way it takes about 10-15 minutes to complete.

That’s it. Within about 6-8 weeks of completion, our partner, Best Companies Group, will produce a list of winners and we start to make announcements.

Rest assured insideARM staff does not have access to employee responses; Best Companies Group has no connection to the debt collection industry (with the exception of their role in this program).  If your staff is — ahem — less than kind, nobody will know but you.  But YOU should know!

Participating companies will receive a free one-page “Employer Benchmark Summary”, and will have the opportunity to purchase the full “Employee Feedback Report” that provides valuable data including a spreadsheet summarizing employee feedback, written employee comments, and industry benchmark information.

These reports offer incredibly valuable information at an unbelievably fair price, regardless of whether you are selected as a winner.  The value in having a 3rd party conduct this survey is that you get candid information from your employees; your HR department could never gather this type of information.  And if you chose to do it independently, you’d pay thousands of dollars.

Please, take advantage of this great opportunity to learn what your employees really think.  After all, aren’t they the ones driving your revenue?  If your staff is unhappy, do you think they are as productive as they could be, or that they are representing you and your clients as they should be?

Yes, it will require some time to complete the company portion of the survey, but it’s not due until mid- summer, so you’ve got plenty of time to deal with it if you get started now.

Simply participating will show your employees that you care.  And just read what your peers have to say about the benefits you’ll enjoy if selected as a winner!

ABOUT THE AUTHOR

I’m the president of Kaulkin Media and publisher of insideARM.com. Our mission is to “shift the public conversation about the ARM industry.” When we started in 1999 this was a really niche topic. Today, our arena truly is the news of the economy and touches nearly every consumer. After a brief “first-job” stint with a regional accounting firm, I worked for Disney as a stage manager for a few years, then went to UCLA to get an MBA. From there I went to AlliedSignal Aerospace and had probably my most challenging and rewarding professional experience, as a materials manager for a manufacturing line. In the mid-90’s I joined Citysearch.com, one of the original Internet startups. After several years of opening new markets and working with newspaper companies on their local and classifieds strategies, I joined the family firm, Kaulkin Ginsberg.

Jacksonville debt collection agency’s tactics have triggered many complaints 

   The Florida Times Union | 01/23/11

Drew Hasselback: Collecting from deadbeats is never easy 

   FinacialPost.com | 1/24/11

Wichita Woman Says Charges For Video Late Fees A Nightmare 

   KAKE 10 | 1/24/11

Collection agencies also struggling in the down economy 

   Daily Herald | 1/23/11

Debt collection math 

   Reuters | 1/24/11

Debt collection tops consumer complaints in Ulster 

   Daily Freeman | 1/25/11

CFS II Rises Up From The Ashes For Second Chance In Tulsa 

   Newson6.com | 01/26/11

Montanta Files Lawsuit Over Video Late Fees 

   NPR | 01/26/11

More than 400 Lawsuits Filed Against Agencies, Creditors 

   Credit & Collection Risk | 01/27/11

Your “Friend” on Facebook Could be a Debt Collector 

   Ozarks First | 1/24/11

Each week we bring you 10 of our most favorite stories from around the industry.

Week of October 31, 2010

1. Debt Collectors Face a Hazard: Writer’s Cramp

(New York Times, 10/31/10)

When Michael Gazzarato took a job that required him to sign hundreds of affidavits in a single day, he had one demand for his employer: a much better pen.”

2. Collection Lawyer Deanna Natale facing disciplinary hearing

(CNW, 10/31/10)

Markham lawyer Deanna Natale, daughter of former federal Liberal cabinet minister Judy Sgro, is scheduled to appear before a disciplinary hearing in connection with her law firm’s high-volume debt collection practice.”

3. Amherst man faces prison for selling debtor data

(BuffaloNews.com, 10/30/10)

An Amherst man faces up to 10 years in prison and a$250,000 fine for selling debtor information that was bank property, U. S. Attorney William J. Hochul Jr. said Friday.”

4. Pa. accuses debt company of deceiving consumers

(BloomburgBusinessweek, 10/29/10)

A debt collection agency used phony hearings in a room decorated to look like a courtroom to collect money from unsuspecting consumers, according to a lawsuit filed Friday against the company by Pennsylvania.”

5. Uptick in collection industry lawsuits

(Credit & Collections Risk, 10/28/10)

Fair Debt Collection Practices Act (FDCPA) lawsuits rose slightly to 455 in the Oct. 1-15 period compared to 441 in the last half of September, according to data from U.S. District Courts..”

6. Second man admits selling debtor info

(WIVB.com, 10/29/10)

U.S. Attorney William J. Hochul, Jr. announced today that Thomas Rice, 37, of Amherst, New York, pleaded guilty before Chief U.S. District Judge William J. Skretny to a felony charge of sale of debtor information which was property that belonged to a bank. This offense carries a maximum penalty of ten years in prison, a fine of $250,000 or both.”

7. Flaws Seen in IRS Decision To Fire Debt-Collection Agencies

(NASDAQ, 10/26/10)

The U.S. Internal Revenue Service may have relied on flawed data when it decided in 2009 to end the use of private agencies to collect tax debts, a government auditor said Tuesday.”

8. Collection Agency Raises Over $15,000 for Making Strides Against Breast Cancer

(PRLog, 10/25/10)

American Profit Recovery, a collection agency based in Michigan, Massachusetts and North Carolina, recently participated in the Making Strides Against Breast Cancer walks in three cities and raised a total of $15,500 for their efforts. Over $10,000 of the company’s fundraising total was donated by the company’s ownership.”

9. Better Business Bureau Warns Against Debt Collection Scheme

(NBC4i, 11/01/10)

The Better Business Bureau is warning consumers to be on the alert for scam artists posing as collectors of nonexistent payday loan debts. The scammers typically call consumers and threaten them with legal action or arrest unless the victims authorize immediate payments from their bank accounts.”

10. Just how long does that black mark stay on your credit report?

(KOMO News, 11/1/10)

It’s scary when you can’t pay your bills, and when creditors are calling and sending you those threatening letters. But it’s important to know long that debt stays on your credit report.”

Each week we bring you 10 of our most favorite stories from around the industry.

Week of August 22, 2010

1. BBB Warns About Bogus Debt Collectors; Local Woman Targeted

(KWTX.com, 08/27/10)

The Better Business Bureau issued a bulletin Friday warning about phony debt collection callers who claim to be from the Kentucky-based payday loan company U.S. Cash Advance.”

2. HEPSEN v. J.C. CHRISTENSEN AND ASSOCIATES, INC.

(Leagle.com, 08/25/10)

This appeal concerns an award of attorneys’ fees under the Fair Debt Collection Practices Act (“FDCPA”), 15 U.S.C. § 1692 et seq. After a one-day bench trial before a magistrate judge, Defendant J.C. Christensen and Associates, Inc. (“Christensen”), was found to have committed two violations of the FDCPA. The magistrate judge awarded Plaintiff Ahmet Hepsen (“Hepsen”) $500 in statutory damages. Having prevailed in his FDCPA action, Hepsen filed a motion for an award of attorneys’ fees under the FDCPA. At the time the magistrate judge ruled on the motion, Hepsen sought $54,273.50 in attorneys’ fees. Hepsen did not receive the requested $54,273.50..”

3. Debt collector accused of continuing to run an agency from prison

(Buffalo News, 08/25/10)

A Lancaster man imprisoned on a parole violation has been accused by Attorney General Andrew M. Cuomo of illegally operating his Buffalo debt collection agency from federal prison.

4. Ramos bill would set criteria for reporting outstanding health care debt

(NJ.com, 08/24/10)

Hoboken Assemblyman Ruben Ramos Jr. will introduce legislation that would require health care providers to notify patients with outstanding debt before reporting them to a private collection agency or consumer reporting agency.”

5. City approves new system to collect unpaid taxes

(Lancaster Eagle Gazette, 08/24/10)

Lancaster will enter into a new agreement with a tax collection agency in an effort to acquire money owed to the city, but not paid.”

6. Lawsuits Filed Against Agencies, Creditors Decline

(Credit & Collections Risk, 08/24/10)

The number of collection agencies and creditors sued between August 1-15 totaled 426, down from 488 sued in the July 16-31 period, but up from 389 in the first half of July, according to data from U.S. District Courts.”

7. Collection Agencies Maintain Growth Posture in Tough Economy

(insideARM.com, 08/18/10)

An increase in placements and portfolio supply has prompted collection agencies and debt buyers to hire people recently. Meanwhile, the performance outlook for the ARM industry remains strained.”

8. Kaulkin Gingsberg’s Michael Lamm asks, “What is Your “Plan of Attack”?

(insideARM.com, 08/24/10)

I love the summer. Who doesn’t?  It is a great time to be with your family and friends and to be outside if it is not 100 degrees and humid, like it has been in the Philadelphia area recently!  It is also a good time to reflect on how the year has been going with your debt collection agency, and to figure out your “plan of attack” for the remainder of the year and 2011.”

9. Final Changes Restricting Credit Cards will have Lingering Impact on ARM

(insideARM.com, 08/23/10)

The rules of the game governing credit cards are changing yet again, as the final provisions of federal legislation involving credit card interest rates and fees went into effect yesterday. The big buzz this is creating is centered on credit card interest rates reaching a nine-year high, expected to go up even further in light of these new restrictions.”

10. TOTAL U.S. BANKRUPTCIES IN FIRST HALF OF 2010 UP 14 PERCENT OVER FIRST HALF OF 2009

(American Bankruptcy Institute press release, 08/17/10)

The total number of U.S. bankruptcies filed during the first six months of 2010 increased 14 percent over the same six-month period in 2009, according to data released today by the Administrative Office of the U.S. Courts. Total filings reached 810,209 during the first half of the calendar year of 2010 (January 1-June 30), compared to 711,550 cases filed over the same period in 2009. The totals represent the highest number of filings for the first six months of a calendar year since 2005, when the Bankruptcy Code was amended.”

Each week we bring you our 10 most favorite stories from around the industry.

Week of June 20, 2010

1. Woman sues debt collector for using profanity

(The Southeast Texas Record 06/23/10)

A Texas woman is suing a collection agency over allegations that the debt collector used profane language when attempting to collect a debt and placed calls to her as late as 10pm.

2. Suthers Warns About Phony Debt Collection Calls

(CBS4Denver.com 06/22/10)

Callers with foreign accents are demanding prompt payment from Colorado residents and threatening legal action if payment is not received right away. But, Colorado Attorney General John Suthers says not so fast-the calls appear to be bogus.

3. Spencer couple sues banks for collection violations

(The West Virginia Record 06/22/10)

Couple has eyes set on banks over alleged collection practices.

4. Tough Times Projected for Debt Collectors

(CreditInfoCenter.com press release, accessed 06/24/10)

CreditInfoCenter.com is predicting that the debt collections industry should prepare for a rough ride.

5. Summit Account Resolution Achieves a Perfect A+ BBB Rating

(Summit Account Resolution press release, accessed 06/21/10)

A Minnesota-based collection agency has earned a A+ rating with the Better Business Bureau. Further proof that not all collectors are “bad guys.”

6. Rein in wild debt collectors: Thousands of New Yorkers are being unfairly targeted

(NYDailyNews.com 06/20/10)

Columnist Errol Louis sheds light on “junk lawsuits” which are “clogging the courts” in New York. The article goes on to state, however, “Nobody is suggesting that people get out of paying legal, legitimate debts.”

7. Top 5 Celebrity Bankruptcies

(MyBankTracker 6/24/10)

Actress Kim Basinger,  musicians MC Hammer and Cyndi Lauper, blogger elite Perez Hilton,  and former US President Abraham Lincoln prove that even successful people can fall on hard times.

8. LexisNexis Risk Solutions Simplifies Skip Tracing and Enhances Collections Productivity

(insideARM.com 06/23/10)

The new “Skip Wizard” accelerates the skip tracing process and helps new skip tracers be more productive.

9. A Powerful Group Aligns Against the ARM Industry

(insideARM.com 06/22/10)

insideARM.com’s Patrick Lundsford shares his reaction to the recent press release issued by a New York chapter of AARP.

10. Columbia Ultimate President and CEO to Receive ACA International Award

(Columbia Ultimate press release, 06/22/10)

Columbia Ultimate’s R. Fred Houston set to receive ACA’s Affiliate Member Award of Excellence.

A collection agency based in Bloomington, Minnesota had its collection license temporarily suspended by the Minnesota Department of Commerce for allegedly failing to remit recovered funds to its clients within 30 days. According to an article on InsideARM.com, the Department of Commerce claims the agency used the money to fund operations.

This is starting to get crazy.

I just read the article on InsideARM.com: NJ Bill Would Require Collectors to Send Copies of FDCPA to Consumers.

Is this for real, or is it another one of those bad dreams?

When I put the FDCPA into Word and move the columns to 0.5, it still comes out to 22 pages (can get it to 11 double sided).

To push this additional cost (paper and extra postage) onto the shoulders of the collection agencies is absurd, especially given the fact that a majority of collection notices are never opened in the first place. This could be a HUGE cost to the agencies, which they’ll perhaps have to pass back on to the creditor through higher fees, which the creditor will then have to pass back on to the good paying customers through increased prices.

Is this the best we got? Somebody, please tell me I’m dreaming and that I’ve overlooked something here.

Gary Jensen editor

Here is Chris Hansen’s Debt Trap production which aired on Dateline NBC in March.

Part 1

Part 2

Part 3

Part 4

Part 5

Part 6

Yes, you read that correctly. 300 warrants!

The Ashley County Ledger recently ran an article titled Judge Pope Issues 300 Warrants for Those Who Have Outstanding Debts.

The article points out that similar efforts may continue on a quarterly basis as a way to entice folks to pay up. It also states that community service may be available for those who lack the ability to pay.

Click here for the complete story.

Do you think the judge made a wise decision?

A company in Lithuania has sought the help of a “witch” to help boost collection efforts.

While, I’m not sure the move will have any true impact on the bottom line, it is great to see the creative juices flowing.

What creative measures are you taking during this turbulent time in the industry?
Gary Jensen
Editor collector mentor

Image on flickr c/o Joe Shlabotnik